Public sector banks in India have partnered with technology firm Veefin Solutions Ltd to offer supply chain financing for micro, small and medium enterprises (MSMEs) on a cloud-based platform. The collaboration, facilitated by PSB Alliance, a group of public sector banks, aims to bridge the estimated Rs 20-25 trillion ($270-340 billion) credit gap for MSMEs. The platform will enable communication between lenders and offer various financing options.
The government has asked lenders to look at their credit disbursal practises for micro, small and medium enterprises (MSMEs) following complaints of high rate of rejection of their loan applications. A government official said the banks need to respond within a month.
Accepting of digital payment through the personal retail account could pave the way for the country’s cottage, micro, small and medium enterprises (CMSMEs) to avail loans from banking channels, experts said today.